1. Field
The apparatus, system, and method described, illustrated, and claimed in this document relate generally to a mobile commerce authentication and authorization system. The system enables a user of an unmodified mobile wireless communications instrument (including, but not limited to, a mobile wireless cellular telephone) to conclude authenticated and authorized purchases, and other commercial transactions, across a wireless communications system. The system also automatically initiates a payment application as a consumer enters a business so that when the consumer is ready to depart the business and to pay for purchases of goods and/or services, the unmodified mobile wireless communications instrument is prepared to conclude the transaction by effecting payment.
The mobile wireless communications instrument is capable of allowing a consumer to anonymously effect payments across a credit network by charging a payment to one or more payment instruments of the user, or to conduct and conclude such commercial transactions using any payment system desired by a consumer and acceptable to a vendor or merchant. Anonymity is achieved by use of the location parameters for authentication and the relationship between the location parameters and a payment sum, thus obviating the need for conventional identification features such as a personal identification number, possession of a payment instrument, provision of a biometric identifier, or any comparable device or procedure.
2. Background
Merchants, vendors, credit card associations including VISA® and MasterCard® that act as gateways between a financial institution and an issuer for authorizing and funding purchases, and users of mobile wireless communications instruments, all desire to conduct and close purchases and sales quickly and expeditiously. At least one concern is security, including acceptable and proper authorization and authentication that gives a vendor and a customer confidence that a fraudulent transaction will not occur.
Current constructs for effecting consumer purchases across a credit network generally are limited to use of a payment instrument in connection with purchase. Currently, a consumer must have in possession a plastic payment instrument such as a credit card or debit card having a magnetic strip. Alternatively, “contactless” payment instruments may be used. At the point-of-sale a credit card reader, terminal, or similar point-of-sale payment device is provided that requires the consumer to successfully swipe a payment instrument through the point-of-sale device. Over time, repetitive use degrades the magnetic strip on the payment instrument, and the data embedded in the magnetic strip may become unreadable by a point-of-sale device for a variety of reasons. Degradation of the magnetic strip may cause payment rejection although the consumer may be the authentic owner of the payment instrument. Even in the case of contactless payment instruments, authentication or verification of the customer is limited to data and information embedded in the payment instrument. Whoever possesses the payment instrument can cause purchases. The use of personal identification numbers solves neither the problems of customer identification nor customer authorization. Even customer authentication fails to overcome problems resulting from lost or stolen payment instruments, degraded instruments, or loss of functionality between the payment instrument and point-of-sale payment devices.
There is a worldwide need, therefore, for a secure point-of-sale payment system that substantially automatically authenticates a customer and substantially automatically initiates a payment for sales and purchases of goods and services on entry of a consumer or customer into a business or into a geographic area surrounding a business that includes use of a portable, or mobile, wireless communication instrument now commonly in possession of consumers worldwide. At least one example of such a portable, or mobile, wireless communications instrument is a cellular telephone, but any wireless communications instrument to which a computer and/or data processing system may be operatively connected may be used.
Most proposed mobile commerce solutions for conducting purchases using a mobile wireless communications instrument such as a cellular telephone require the cellular telephone to be altered either structurally or systemically by adding hardware, software, and/or combinations of hardware and software. For example, although Near Field Communication (“NFC”) offers solutions in this field, the mobile wireless communications instrument must be adapted to communicate with an NFC-adapted device. The only advantage of being integrated with a cellular telephone is that the user is, these days, likely to have a cellular telephone in possession of the user and/or customer. However, the need for major alterations of the mobile wireless communications instrument, and the infrastructure equipment to support the NFC-operable device, substantially reduce the likelihood of universality of use.
In addition, problems arise because consumers may lack intimate familiarity with all operational requirements for using a cellular telephone or other instrument to select menu entries, identify credit card information, enter vendor and/or merchant names, and so on. These problems may present issues analogous to a consumer calling a merchant and receiving a seemingly endless array of voice-activated options before the consumer may achieve what the consumer desires.
The mobile commerce authentication and authorization system of this document, however, advances the art and provides the technical advantages of not requiring a consumer or user to possess a payment instrument at the time of a transaction; or to know or recall information such as a password, a personal identification number, or personal details often forgotten; or to be someone identified by such characteristics as biometric fingerprints, appearance, or similar personal details.
Rather, the present system achieves authentication and authorization, and consequent trustworthiness, using at least two physical and/or location determinables, parameters that are combined to eliminate concern about further authentication and authorization. The two physical and location determinables include (a) one or more location parameters, namely the location of the mobile wireless communication instrument that may be determined at least using position-determinable data and systems, (b) the location of a point-to-sale device of a vendor and/or merchant, which in combination support the presumption that likelihood that the same payment sum requested for payment by the user of the mobile wireless communication instrument will not occur substantially simultaneously at any other point-of-sale device in a location at that time.
In addition, the apparatus, system, and methods disclosed, illustrated, and claimed in this document obviate paper receipts, and offer the prospect of substantially instant payment transactions across a credit network.